Thursday, July 2, 2009

Job Loss Contributes To Poor Housing Market

Today, The Labor Department report, released a job loss report that showed Employers cut a larger-than-expected 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent. This is very bad news form the Real Estate market as a whole.

I can not quantify how much impact the Nation’s job losses have had a local impacted on Alameda. But with job loss the Island’s Realtors, Mortgage Brokers, Contractors, local business will all suffer. With fewer homes selling, the City’s Transfer Tax will continue to underperform the projections.

The numbers suggest that the economy's road to recovery will be bumpy and even as the
recession signs of easing, business and families will want to keep control their budgets. For families they will spend less and companies keep control on costs and are cautious of hiring until they feel certain the economy has stabilized.

Given that Alameda has seen no more than 35 home sales since October of 2008, it is safe to say that home sellers are staying put and buyers are cautious to add debt.

MSNBC had an interesting panel discussion about housing and job. The conversation is a bit technical, but there is a good explanation of the housing bubble.

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